Split Valuation in Inventory Management on SAP S/4HANA Cloud Public Edition

[Gerhard_Welker]

Split Valuation in Inventory Management: Usage and Purpose

There are certain materials that require separate valuation of various stocks within a specific valuation area for several reasons:

• Materials originating from different sources (e.g. country 1 or country 2)
• Materials of varying quality grades
• Materials with different statuses
• The need to differentiate between in-house production and external procurement
• The need to differentiate between various deliveries

Figure 1: Three examples of split valuation that take the valuation type into account. The three examples shown in the figure are explained in SAP Help chapter Valuation Type.

As shown above Split Valuation enables you to manage materials with different sources, quality grades, and statuses as multiple partial stocks. Valuation happens at the partial stock level for transactions like goods receipts or physical inventories. Use it to accurately track and manage materials with varying characteristics and sources.

Each valuation type manages the stocks of a material subject to split valuation separately.

They are cumulated in the valuation header record: This is where all the individual stock quantities and stock values are added together and managed. A moving average price (MAP) is calculated from the values of the various valuation types and the stock quantities. The following graphic shows an example of split valuation:

Figure 2: Example of split valuation (MAP = Moving Average Price). SAP Help chapter Stocks Subject to Split Valuation explains the example shown in figure in detail.

Check out the SAP Help for further information:

Figure 3: SAP Help Portal - Documentation of Split Valuation in Inventory Management

Evolution of Split Valuation in SAP S/4HANA Cloud Public Edition (Release Information)

Release 2111

Since SAP S/4HANA Cloud release 2111 Inventory Management supports Split Valuation in the goods receipt process. For this purpose, two configuration steps enables you to customize customer specific valuation categories and valuation types, see blog post Support of Split Valuation in the Goods Receipt Process). Watch the demo video Support of Split Valuation in the Goods Receipt Process that shows the usage of split valuation in the goods receipt process.

Release 2502

With the 2502 release, the following apps for goods movement and inventory control support materials with split valuation: 

• Manage Stock
• Transfer Stock - In-Plant
• Transfer Stock - Cross-Plant
• Material Documents Overview
• Stock - Single Material
• Manage Manual Reservations 
• Manage Reservation Items
•  

It is possible to either select a valuation type or show the assigned valuation type for the split valuated material.

For stock transfer postings the supported movement types are listed in the documentation:

• Transfer Stock - In Plant
• Transfer Stock - Cross Plant.

Watch the next video that shows the split valuation enhancements that are available with release 2502. In addition, the customizing and product master details that are used in the demo, are shown. 

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